Why and How Independent Agencies Should Conduct Regulatory Impact Analysis

Independent regulatory agencies face increasing pressure to conduct high-quality economicanalysis of regulations, similar to the regulatory impact analysis conducted by executive branchagencies. Such analysis could be required by evolving judicial doctrines, regulatory reformstatutes, or executive order. This article explains how regulatory impact analysis can contributeto smarter regulation, documents the current low quality of such analysis at many independentregulatory agencies, and offers a blueprint that independent agencies can use to build theircapacity to conduct objective, high-quality analysis